Spirit of Jefferson. [volume] (Charles Town, Va. [W. Va.]) 1844-1948, 1887-03-08

ficient money to cover the orders or
him, including the interest on the
bonds. But the railroad tax not being
paid, the levy which was made on ac'
count of interest was used to pay
other expenses of the county. This
railroad tax will undoubtedly he col
lected, and then the county will have
this $4,000 to make good its &C,
counts.
Baker issued five per cents. SIG. 900 OF
Interest for fraction of year... 1.191.5
Total five per cent bonds and frac-
tional interest issued by Baker Sl1S,091.51
Baker took up and can
cclled six per cents. SOB 10000
He paid interest on same 4.4M.G9
Total six per cent bonds
and interest taken up
by him.. ........ SfOI.394. Z!
Difference between five
per cents issued and six
per cents taken up by
Baker also paid interest
on bonds which lie did
not take up. ......... 1850. OF
his hands. .......... se,o86.7 Il
Deduct his commissions
aud expenses. ........ 54l3I
Balance in Bakers
hands to credit of
-. county 81, 4so.'''
At this point Baker informed the
county court that he was unable to
fund any more Of the debt. The diff
fculty was that persons would not ex-
change six per cent. bond for five
per cent. which was already payable.
Investors wish q bond which has a
long time to run; they wish to obtain
permanent investment, and the
longer bond has to run before it can
be paid the more valuable it is. The
county court endeavorcd to find an
agent who would undertake to per-
form the task which Baker was I'M
able to accomplish. The bankers who
were approached would not accept the
business because the commission of
fcred by the court was less than the
current rate, and because it is almost
impossible to sell bond which may
be paid whenever the county pleases
to do so. In this predicament the
county court said to Amman that if
he would undertake to fund the bal
ance of the debt they would apply
to the Legislature for authority to
issue new bonds which could not be
paid for twenty years, and the inter
est on which should be payable semi
annually. The trouble with the five
per cent. Baker bonds was this: The
county could pay them whenever it
pleased, and the interest was payable
annually.
1t is said, and after inquiry we be-
lieve it is true, that Amman undertook
to fund the debt on the faith of the
representation made to him by the
county court. He has sold S120.50C
of the five per cent. Baker bonds, and
the persons to whom he sold them now
ask the county court to comply with
its promises made to Amman; they ask
that the bonds issued by Amman shall
be taken up and new bonds he issued
of precisely the same character eN-
cept that they will have twenty years
to run and the interest will be paid
scmi-annually. In our judgment, it
was unwise for the court to consent
that the bonds should run rs long rs
twenty years, but having done so and
the Legislature having passed the law,
it is incxpedient to violate the bar
gain. Honesty is the best policy
The new bonds, having twenty years
to run, will sell better than the Baker
bonds. but if the court breaks faith,
the Baker bonds will he at discount,
whereas if the county's credit is kept
good, they will be worth small pre-
MUM. This bond business has been
wretchedly managed, and it is to he
hoped the new court will act more in
diligently and not make confusion
worse COMPOUNDED.
We did not know until recently that
the Baker bonds had taX-rcceivable
coupons. 1t never occurred to us
that in 1881 the county court had
acted so foolishly as to make coupons
receivable for taxes. We never had
occasion to examine what had been
done and we met with no one who I'M
derstood the matter. We knew il
was in great confusion, and it was
developed that the court was about TO
issue the new bonds last Friday week,
before the subject was either dis
cussed or understood. The court
acted very wisely to delay action.
1t may seem hardship on the
holders of the Baker bonds that the
Amman bonds will be worth more in
the market, but they must blame
themselves for not taking care OF